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Virgin Money clarifies position on takeover bid

Virgin Money clarifies position on takeover bid

Virgin Money Australia has stated that the outcome of a foreign takeover bid initiated by a former NAB-owned lender will not impact the company.

Earlier this week, it was revealed that UK lender Clydesdale and Yorkshire Banking Group (CYBG) made an offer for Virgin Money UK, valuing the lender at £1.6 billion ($2.9 billion).

In a statement released to Mortgage Business, a spokesperson from Virgin Money Australia said: “Virgin Money Australia is wholly owned by [the] Bank of Queensland. Changes to the ownership or structure of Virgin Money UK will not impact Virgin Money in Australia.”

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CYBG has confirmed its interest in acquiring Virgin Money UK and said it believes that the merger would enhance its offering and strengthen its footprint in the UK market.

“CYBG recognises the strength and appeal of the Virgin Money brand. Our proposal would ensure that the Virgin Money brand would play a significant role in the combined group, subject to reaching agreement with Virgin Group Holdings Limited,” CYBG said in a statement. 

The British lender believes that the combination would create the UK’s leading challenger bank offering both personal and SME customers a genuine alternative to the large incumbent banks.

“The combination would provide a powerful full-service banking offer, including leading digital and mobile banking services, for six million personal and business customers, bringing together the complementary strengths of CYBG and Virgin Money.

“With this further strengthened customer franchise and national reach, CYBG believes the combination would deliver increased value for shareholders and wider benefits to other stakeholders.”

CYBG was formally owned by NAB, before the big four bank’s shareholders voted for a demerger in January 2016, in order to “pursue our own focused strategy in our core markets in Australia and New Zealand”.

Virgin Money UK is set to hold a board meeting on Tuesday, 14 May.

[Related: NAB to focus on ‘core markets’ following UK exit]

Virgin Money clarifies position on takeover bid
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